Maersk lays off 122 following loss of rig contract

ConocoPhillips and Marathon Oil terminate Maersk Valiant contract a year early

The Maersk Valiant operates in the Gulf of Mexico (photo: Maersk)

August 3rd, 2016 10:10 am| by Christian W

Maersk Drilling has laid off 122 employees after one of its rigs, the Maersk Valiant, lost a contract prematurely to one of its customers last week.

The Maersk subsidiary’s rig, which operates in the Gulf of Mexico, had been leased out to ConocoPhillips and Marathon Oil since 2014 in a contract due to last until September 2017. But in the wake of struggling oil prices, the US oil companies cancelled the agreement before time.

“With the termination of the Maersk Valiant, we are reminded of the extremely challenging conditions in the offshore oil and gas market,” said the head of global sales, Michael Reimer Mortensen.

“It is with regret that we will see a high performing rig such as the Maersk Valiant without work, but we will continue to explore opportunities with our customers and seek ways to create innovative solutions to enable project viability.”